Fair Rewards, Flexibility and Team Building!

There are so many different compensation plans around for work from home businesses - How do you pick the best one?

Last week we spoke about the balance a company must have, pricing their products fairly, making a profit, putting money into R & D and compensating their distributors fairly.

This week, we'll talk about how the money is shared among the distributors - The Compensation Plan.

There are many different plans in existence with names like "the stair step breakaway", "the hybrid", "the matrix" and "the binary" - and understanding them can become quite confusing when you're starting out - So what should you look for in a compensation plan?

The main thing is that you want to be rewarded fairly for your effort. You want to be able to see rewards when you get results, even early in the business. You also want to be able to develop a comfortable residual income over time.

A compensation plan must have flexibility. A good plan will allow you to make money either by sponsoring other Associates or by retailing product or both. It should give you the option to buy products in small bulk lots for a cheaper price (and lower point value), allowing a good profit margin for retail.

Finally, a good compensation plan should encourage team-building. When you start a new associate in your business, you should be able to put them with one of your team members, so that your team member also benefits - without losing money yourself.

A good compensation plan will allow you to build a team, rather than placing people in competition with one another.

When looking at a compensation plan, consider fair rewards, flexibility and team building.